Christopher J. Rae

The plaintiffs, indigenous Mayan Q'eqchi' from Guatemala, sued a Canadian mining company and its subsidiaries for human rights abuses allegedly committed by security personnel at a mining project in Guatemala.

The defendants brought motions to strike the claims for disclosing no reasonable cause of action, arguing that a parent company does not owe a duty of care for the actions of its foreign subsidiary.

The court dismissed the motions, finding that it was not plain and obvious that the negligence claims would fail, as the plaintiffs pleaded facts that could establish a novel duty of care.

The court also dismissed a motion to strike one of the actions as statute-barred, finding that the claim was based on sexual assault and fell within the exception in section 10 of the Limitations Act.

Following the dismissal of appeals from a master's decision rejecting claims of litigation privilege, the court determined costs.

The responding parties sought partial indemnity costs reflecting significant legal work and extensive materials filed on the appeal.

The court applied the principles under s. 131(1) of the Courts of Justice Act and Rule 57.01(1) of the Rules of Civil Procedure, emphasizing that costs must be fair and reasonable and should reflect the parties’ reasonable expectations.

The court rejected arguments that the large volume of materials filed by the appellant should influence the award and noted that the appellant advanced an arguable legal position without misconduct.

The court awarded $8,000 inclusive of fees, disbursements, and tax to each group of respondents.

A human rights organization sought leave to intervene as a friend of the court in three related civil actions alleging human rights abuses in Guatemala by subsidiaries of Canadian mining companies.

The proposed intervention related to pending motions by the defendants to dismiss the claims for failure to disclose a reasonable cause of action.

The proposed intervenor argued it could assist the court by providing expertise on international human rights law, transnational corporate responsibility, and the potential scope of a duty of care owed by Canadian parent corporations for overseas conduct of subsidiaries.

The court held that the organization could provide a useful legal perspective on international standards and policy considerations without interfering with the evidentiary record.

Leave to intervene was granted with limits on written and oral submissions.

Appeal from a Master's order compelling production of communications and answers on discovery despite a claim of litigation privilege.

The appellant argued that emails and a meeting with its insurance broker were created for the dominant purpose of anticipated litigation following denial of insurance coverage for an aircraft crash.

The court held that the appellant failed to establish an evidentiary basis that the dominant purpose of the communications was litigation, noting that the available evidence suggested the discussions focused on advancing the insurance claim rather than preparing for litigation.

The court further held that any common interest litigation privilege between the insured and the broker would have been dissolved once the insured commenced an action against the broker.

The Master's order compelling disclosure was upheld.

This is a preliminary motion ruling on appeals of Compliance Audit Committee decisions to order compliance audits of election campaign finances.

The appellants sought to have the appeals conducted as hearings de novo, while the respondents and the Committee argued the appeals should be limited to a review of the record.

The court determined that absent a clear statutory mandate to the contrary, appeals must take the form of a review of the record rather than de novo hearings.

The court rejected arguments that deficiencies in the record, the Committee's failure to provide reasons, or the prematurity of the audit application warranted a de novo hearing format.